1. Title of project: Reduced Impact Logging() for Carbon Sequestration in East Kalimantan

2. Host country: Republic of Indonesia

3. Brief project description:

This project will implement reduced-impact logging techniques (RIL) to reduce net greenhouse gas
emissions associated with logging practices in East Kalimantan on the island of Borneo. The project
involves the development of guidelines and procedures for implementing RIL techniques, on-site training in
directional felling, and the implementation of RIL techniques on a total of 600 hectares (ha) of forested
land targeted for imminent harvesting. Special strategies, including collaborative planning and management,
will be undertaken to ensure that RIL ultimately contributes to local sustainable development. This is to
ensure that the local community will gain economic benefits.

Contact Person for AIJ Activities (if different from the Administrative Officer)

Surname

First name, middle name

Job title

Direct telephone

Direct fax

Direct e-mail

5. Description of AIJ project activities:

Item

Type of Project

Sector(s)

Land-use change and forestry

Primary activity(ies)

Reduced impact logging

Project Location

Country

Republic of Indonesia

Exact location (city, state, region)

East Kalimantan (Northeast)
Exact site identified to be identified by APHI

Key Dates and Current Stage of Project

Project starting date (month/year)

Date dependent on funding

Project ending date (month/year)

Date dependent on funding

Project lifetime (years)

40

Current stage of project

Mutually agreed

General Project Description and Technical Data

This project will implement reduced-impact logging techniques (RIL) to decrease net greenhouse gas
emissions associated with logging practices in East Kalimantan on the island of Borneo. The project
involves the development of guidelines and procedures for implementation of RIL techniques, on-site
training in directional felling, and implementation of RIL techniques.

RIL will be implemented in East Kalimantan at a site to be determined by APHI and other
stakeholders. The site will meet the criteria as outlined in the original USIJI submission. The
forest is lowland dipterocarp forests, which have not been previously harvested. On-site training
will be conducted in RIL techniques, followed by implementation of these techniques. RIL can reduce
logging damage by as much as 50% through pre-cutting vines, directional felling, and planned
extraction of timber on properly constructed and utilized skid trails. RIL techniques have been
successfully implemented in neighboring Malaysia, particularly collaborative planning where
population is not dense.

In implementing this project, special emphasis and strategies will be undertaken to ensure that the
project results in sustainable development as defined by the local people. This will include
stakeholder consultation and stakeholder involvement in the project itself.

6. Cost:

(a) Explanation of methodology for calculating cost data

Methodology for Calculating Cost Data

The estimated cost of implementing RIL in Kalimantan, Indonesia was developed based on the
assumption that the costs and carbon-saving benefits in East Kalimantan are similar to that of
Sabah, Malaysia. Research was conducted to support pilot projects in southeastern Sabah, Malaysia
in 1992, in which a power company provided funds to a timber concessionaire to implement guidelines
aimed at reducing logging damage. Based on this research, Pinard and Putz (in Retaining Forest
Biomass by Reducing Logging Damage in Biotropica 28(3):278-295) estimated that it would cost
US$300 per ha to implement RIL guidelines in dipterocarp forests in Sabah.

The cost of applying RIL techniques to 600 ha (at approximately $550 per ha including project
development, verification and training) in East Kalimantan concessions is estimated to be $330,000.

The cost per tonne of carbon is estimated to be $5. This estimate is based on the project
development and implementation costs divided by the GHG benefits. The project development costs are
considered confidential by the project developer.

(b) Cost data–Project development

This information is considered confidential by the developer and therefore is not available.

(c) Cost data–Project implementation

Annual implementation cost information is not yet available.

Itemized Project Implementation Costs

Year(s)

Item

Projected Amount

(US$)

Project Costs

RIL Implementation

330,000

Subtotal

330,000

Project Revenues

No information is available.

Subtotal

0

Net Project Cost (Project Costs-Project Revenues)

330,000

7. Monitoring and verification of AIJ project activities and results:

Item

Party(ies) that will be monitoring project activities

Environmental Audit Committee (EAC) participants (see below)

Party(ies) that will be externally verifying project results

Institute Pertanian Bogor (IPB-Bogor Agricultural University)

Date when the monitoring plan became (or will become) operational (month/year)

Description of Monitoring and Verification Activities and Schedule for Implementation

Monitoring of project results and compliance with RIL guidelines will be carried out by an
Environmental Audit Committee (EAC), which will meet at the project site on an annual basis for the
length of the project (40 years). The EAC will be comprised of individuals external to, but
selected by the hosts and principal investors in the project. The host and principal investors each
choose one member of the EAC and then select a third forest harvesting expert by mutual agreement.
This group will then choose additional members from adjacent local areas to assess technical and
socio-economic impacts.

Foresters will carry out field measurements necessary to monitor actual CO2 emission
reduction and enhanced sequestration from RIL. All data produced will continue to be peer reviewed
and published in appropriate academic journals. Monitoring will be conducted during the period in
which all 600 ha of the project area have been harvested, and then will continue at lower intensity
over the project lifetime. Future updates of CO2 projections will continue to be based
on field measurements of established plots.

Project proponents are jointly responsible for ensuring that RIL areas are protected over the life
of the project. Contractual terms will be established to monitor over the long term.

Researchers plan to monitor the hydrological effects of RIL in comparison to conventional logging
in the study area. Studies of the biodiversity consequences of RIL are also planned.

External verification will be carried out by IPB on an annual basis.

B. Governmental approval

Item

Please check one of the following.

This report is a first report.

Or

This report is an intermediate report.

Or

This report is a final report.

Please check one of the following:

This report is a joint report. Letter(s) of approval of this report from the designated national
authority of the other Party(ies) involved in the activity is(are) attached in Section J, Annex.

Or

This report is a separate report.

Additional comments (if any):

C. Compatibility with, and supportiveness of, national economic development and socioeconomic and
environmental priorities and strategies

Compatibility with Economic Development and Socioeconomic and Environmental Priorities

The forestry industry in Indonesia manages over 60 million ha of production forest. The anticipated
standardization of certification guidelines after 2000 could have a significant impact on the
Indonesian economy. This project will build local capacity to understand and implement sustainable
logging systems in preparing for certification standards. This project will also allow companies to
begin meeting these standards and accessing niche certification markets in the U.S., Japan, and
Europe.

D. Environmental, social/cultural, and economic impacts of the AIJ project

Non-Greenhouse-Gas Environmental Impacts of the Project

Through the reduction of forest damage by 50% relative to conventional logging, the project will
enhance the sustainability of logging operations, improve the growth of residual trees, and
encourage more rapid natural regeneration throughout much of the RIL area. Maintenance of forest
cover and protection of surface soils from bulldozer damage will reduce rates of erosion.
Preliminary studies suggest that by controlling the logging process, populations of understory
birds (considered to be good "indicator species") will be maintained; the same species
suffer greatly in conventionally harvested areas.

Social/Cultural Impacts of the Project

As RIL is intended to promote sustainable development (biodiversity, carbon, lower "annual
allowable cuts"), it is expected that RIL carried out by industrial concessionaires will have
a positive impact and serve as a model of how sustainable forestry can deliver local sustainable
development benefits.

Economic Impacts of the Project

There are no data to suggest or reasons to suspect that implementation of RIL guidelines will
affect local or regional supply, demand, or price of timber products. Improved market access or
price premiums may result if the area is certified by an accredited agency and is well managed.

Employment of local people will be a priority.

E. Greenhouse gas impacts of the AIJ project

1. Scenario description

Item

Site Designation

Site number (order of presentation in this report)

1 of 1

Site name/designation

East Kalimantan

Project sector

Land-use change and forestry

Reference Scenario

Primary activity(ies)

Conventional logging

Has the reference scenario changed since the last report? (If yes, explain any changes below.)

Yes

No

This is the first project report.

Description:

Current logging practices in East Kalimantan involve felling trees in random directions, due in
part to the trees being literally tied together by vines, and extraction by bulldozers, which
results in damage to both the residual stand and the soil. Studies in neighboring Malaysia indicate
that these conventional logging practices break and uproot as many as 50% of the remaining trees
and disturb soils on up to 40% of the land area. The Malaysian studies found that harvesting as few
as 10 to 15 trees per ha released as much as 300 - 350 t CO2. In the absence of the
project, uncontrolled and destructive logging practices are expected to continue in East Kalimantan
concessions. Logging with conventional techniques is assumed to occur once, within one year, during
the project lifetime.

Predicted Project Scenario

Primary activity(ies)

Reduced impact logging

Description:

The project will develop and implement reduced impact logging practices on 600 ha within the
Intracawood concession. RIL is expected to reduce logging damage by as much as 50% through
pre-cutting vines, directional felling, and planned extraction of timber on properly constructed
and utilized skid trails. Logging with RIL techniques is assumed to occur once during the project
lifetime. Data developed in Malaysia show that there will be reduced CO2 emissions and
enhanced sequestration in RIL harvested areas for decades. Even following a second harvest
utilizing RIL techniques, occurring in 30 to 60 years after the first forest harvest, the
CO2 benefits remain positive relative to conventional logging. RIL techniques also
reduce the susceptibility of the forest to weed infestations that reduce biomass recovery rates,
and lessen the susceptibility to destructive fires. In addition, reducing the amount of the forest
canopy that is opened up will lessen the impacts of changes in temperature, light intensity, wind
speed, and moisture on understory plants and animals. Measures to protect future crop trees, and to
provide incentives to fellers and skidder operators to reduce damage to the forest will also be
taken.

Actual Project

Primary activity(ies)

This information is not yet available.

Description:

This information is not yet available.

2. GHG emission/sequestration calculation methodology

GHG Emission/Sequestration Calculation Methodology

Site number

1 of 1

Project sector

Land-use change and forestry

Description of Calculation Methodology for the Reference Scenario

The methodology used to estimate annual net CO2 emissions tracks carbon in above- and
belowground biomass and in wood products over the 40-year lifetime of the project. Following
harvest in year one, portions of the wood harvest and on-site damaged biomass are assumed to decay
at varying rates depending upon fate (i.e., wastewood at the mill, wood products, or on-site
logging debris), and residual living biomass on site is assumed to grow and accumulate carbon. Soil
carbon stocks are assumed to remain constant, and there are no post-harvest silviculture treatments
or forest fires. The assumptions used in the calculations (e.g., biomass carbon stocks, the timber
extraction volume and allocations to decay pools, residual damage, rates of decay, and biomass
growth rates) are based on studies of conventional logging practices in lowland dipterocarp forests
of Sabah, Malaysia.

Description of Calculation Methodology for the Project Scenario

Under the project scenario, RIL techniques are assumed to be used on 85% of the 600 ha site; 15% of
the site is assumed to be "unloggable because of restriction in the RIL guidelines"
(e.g., buffer zones, steep slopes). Carbon stocks on the unlogged portion are assumed to remain
constant throughout the lifetime of the project. Carbon stocks in the remainder of the project site
are tracked in the same way as in the reference scenario, except that the assumptions used in the
calculations (e.g., timber extraction volumes, residual damage, biomass growth rates) are based on
studies of RIL in lowland dipterocarp forests of Malaysia.